Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Amending The City's Investment Policy Pursuant To Section 38.76(D)(9) Of The City Code Of Ordinances.
Strategic Plan Focus
Financial Management & Administration
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
The Investment Policy of the City of Hollywood was adopted on September 16, 2020, and minimally amended by Resolution R-2022-059 on March 2, 2022 and Resolution R-2023-341 on November 1, 2023.
The City desires to update the current Investment Policy by further refining investment parameters to enhance the Investment Policy based on a review by Financial Services and recommendations from the City's Investment Manager.
The more significant revisions in the updated Investment Policy include the following updates:
1. Revising Section X, Maturity and Liquidity Requirements, to add language regarding final maturities requirements for mortgage- and asset-backed securities.
2. Revising Section XII, Authorized Investments and Portfolio Composition, summary table of investment by sector type, and updating portfolio composition limits. The following updates were completed to the summary table:
(A) Updating the minimum rating requirement to N/A for United States Government Agencies, Federal Instrumentalities, and Mortgage-Backed Securities, as most of these types of securities are issued without ratings.
(B) Updating the maximum percentage of the portfolio permitted to be invested in Interest Bearing Time Deposits or Savings Accounts from 10% to 75% and increasing the individual issuer limit from 5% to 20% to provide flexibility in portfolio composition.
(C) Updating the maximum percentage of the portfolio permitted to be invested in Repurchase Agreements from 25% to 20%.
(D) Consolidating Intergovernmental Investment Pools (Stable Net Asset Value) and Intergovernmental Investment Pools (Floating Net Asset Value) into one category titled Intergovernme...
Click here for full text